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CIMA
CIMAPRA19-E02-1-ENG
E2 Managing Performance
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Question: 69
Which of the following are examples of problems associated with group working?
(i) The Abilene paradox
(ii) Synergy
(iii) Risky Shift
(iv) Groupthink
(v) Conformity
A . All of the above
B . (i), (iii), (iv) and (v)
C . (i), (ii), (iii) and (iv)
D . (ii), (iii), (iv) and (v)
Answer: B
Question: 70
Which THREE of the following are benefits of having strong discipline and grievance procedures in place?
A . Cost savings due to legal costs being avoided.
B . Staff have higher morale and are more motivated.
C . Any staff who don�t perform as required can be dismissed without risk of legal action.
D . Company meets its legal requirements.
Answer: A,B,D
Question: 71
Setting a mission is the first stage of the rational approach to strategy setting.
According to David, which THREE of the following are useful areas to include in an organisation�s mission
statement?
A . Customers
B . Shareholders
C . Markets
D . Philosophy
E . Suppliers
F . Government
Answer: A,C,D
Question: 72
Performance appraisal systems are designed to meet a number of objectives.
Which of the following is a positive objective of such a system?
A . To motivate individuals by providing an opportunity for feedback and an opportunity for a staff member to discuss
any issues.
B . Managers have a reluctance to deliver the highest or lowest grades, so end up giving all members of staff an average
grading.
C . Timing of appraisals can lead to problems for management as it tries to schedule a number of performance
appraisals within a short time frame.
D . If the scheme does not have top level buy in, it will be unlikely to succeed and may become a box ticking exercise.
Answer: A
Question: 73
A major innovation has occurred in the automotive industry. Wheels are now available which are guaranteed to not
wear for at least five years.
Ben runs a chain of garages that sell new and second hand parts for cars, buses, trains and planes. His competitors are
slow to react to the new innovation so Ben decides to follow an emergent approach to strategy.
Which of the following actions is Ben likely to take? Select ALL that apply.
A . Ben changes his original business plan and responds to the innovation by stocking the new wheels in his garages.
B . Ben undertakes an analysis of the automotive industry before making a decision on whether to invest in the new
wheels.
C . Ben immediately purchases all the wheels available and then generates a plan to market them.
D . Ben decides to purchase 100 units of the new wheels and will closely monitor how many of these sell.
Answer: A
Question: 74
DRAG DROP
Harvey Maylor defined four stages in the life cycle of a project. This became known as the 4D model.
Match the correct stage to each activity.
Answer:
Question: 75
A manager is introducing a new bonus scheme into the business that will affect ail employees.
Using Likert�s model he follows a benevolent authoritative style of management.
Which of the following best describes the way he introduced the new bonus scheme?
A . He made the decision to introduce the new scheme and enforced it ctcross the business with no discussion or
debate.
B . He makes the decision to introduce the new scheme and sells the idea to employees in order to get buy-in.
C . He asks for suggestions on whether to introduce the scheme but makes the final decision
D . He allows staff to make the decision but offers support and advice.
Answer: A
Question: 76
After undertaking competitive analysis, a company has assembled the information and is now in a position to
benchmark its performance against that of its competitor. A manager has been asked to carry out strategic
benchmarking, but he is unsure of what information he should use.
Which TWO of the options below could be used to undertake Strategic Benchmarking?
A . % Market Share
B . % return on Non Current Assets
C . % late deliveries
D . % sales returns
Answer: A,B
Question: 77
Mintzberg describes various forms of strategy and labels each form.
Which of the following options contains the correct matching of label with description?
A . Plan = means of identifying place in the environment/market
B . Perspective = manoeuvre in a competitive business game
C . Pattern = consistent behaviour over time
D . Ploy = a path to get from here to there
Answer: C
Question: 78
"The ability to exert influence and make someone act according to your own preferences" is the definition of which of
the following?
A . Responsibility
B . Delegation
C . Authority
D . Power
Answer: D
Question: 79
Which of the following are influential drivers of outsourcing? Select ALL that apply.
A . Cost savings
B . Synchronised deliverables
C . New skill sets
D . Rapid growth
Answer: A,C,D
Question: 80
W is the supervisor of the house-keeping team in a large hotel. X, a member of the team, is consistently late to work
which means that other team members have to perform extra work. A number of team members have also complained
to W about X�s aggressive behaviour. Two months ago W spoke to X informally about these issues and for a short
period things improved.
But it is now clear that X is again displaying unacceptable behaviour and upsetting colleagues. W knows further action
must now be taken to deal with the situation.
With reference to the disciplinary process, which is the best course of action for W to take?
A . Write a formal letter to X stating that if the unacceptable behaviour does not stop immediately X will be dismissed
without further notice.
B . Issue a formal verbal warning via a formal interview, with a record of the interview kept on file.
C . Reduce the paid hours allocated to X as a temporary punishment until the behaviour improves.
D . Speak to X informally in a private office and ask that X improves their behaviour and apologises to colleagues.
Answer: B

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E2 Managing Performance Practice Test

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